YASHOYASHO
Yasho Industries Ltd
CMP 2060
Previous resistance zone breakout with volume
breakout and retesting the resistance zone
YASHO trade ideas
Yasho Industries on the verge of a breakoutBSE:YASHO is on the verge of a breakout and one should keep this stock on radar. Buy only after the breakout and keep a stop loss at 1730 for targets of ~2000+. However this is only the first target and you should definitely expect much higher levels here.
1.6x Potential - Technical and Share Price calculation explainedChart is self explanatory.
The management is confident of maintaining & improving margins ( since increase in raw material prices are passed on to the customer )
with peak revenue potential of 1250 Crore from capex incurred ~ with expectations of 60% capacity utilization by 2025.
At Existing 16% margins, 1250 Cr Revenue would roughly equate to around 200 Cr EBIT and 110 Cr Net Profits ~ 95 EPS
The 10 Year Median PE of the company has been around 20.
That would equate to a share price of 95 x 20 = 1900 ~ at peak utilization capacity.
It is a 40% upside potential from here on a conservative calculation.
Aggressively, if I assume increased margins of 18% and 3 Year Median PE of 25 ~ It would roughly equate to share price of 2600
A simple average of the two gives an expected value of 2250.
It wont happen overnight, since unlocking capacity utilization can take years, but such mental models can help build expectations and understand risks.
Note : It is not an investment advice, just for educational purpose. Small Cap shares are very risky, and share has been in downtrend for a while - please do your due diligence before investing.
buy in sip yasho ind for long term investment Yasho Industries is a pioneer in specialty and fine chemicals manufacturing, its high on 8 feb 2099 now its trading 1575 on technical and fundamental company is good only thing is less liquid because most of the equoity with promoters , technically buy for long term investment
